So long and short of it is in our house we have a large amount of debt; to parents for buying and doing up the house and to CC companies (c£12k). For now it doesn't matter how the CC debt came about as we can address that further down the line plus that is not the purpose for this post.
The question is clearing the debt, how to do it.
The options as I see them are:
Get an unsecured loan for the CC debt and pay it off with lower interest over say 5 years. That would take care of the CC which is the primary concern but won't do anything to the larger family debt which are both acutely aware of.
Remortgage and pay off the CC with that - again doesn't take care of the larger debt.
Get an equity loan. We bought for 230, it was a shell at that time and we've done a lot to it (installing heating, plumbing, electrics, a kitchen, moved the bathroom and so on and so on) estimations are that its worth about £330 now. the neighbours moved in 2 years ago and paid £290 and that was for a 'ready to live in house' so £330 we feel is a sensible figure.
We currently have about £200 left on the mortgage, we put in 10% so we have £100k in equity.
The last option would be to sell the house. It would be a wrench as we both really like it but if the figures are accurate [enough] we would cover all of the debt to parents and CC and have money left for a deposit on another house. If we did this we thought about buying again straight away (not keen on this given the March 29th thing) or renting for 6 months with a large amount in the bank for a deposit ready to look again.
Only thing with that is there isn't too much around within or budget but again that may change.
At the moment my feeling is either take out an equity loan which enables us to clear the CC debt and get on with our lives or sell and clear all of the debt.
Pros for the loan: clear the CC debt and keep the house.
Cons: still have large parental debt.
Pros for selling: clearing every bit of debt we have and starting over and have a deposit for another house.
Cons: lose the house.
Although selling would mean losing the house it's for the greater good and would allow us to start again with a clean slate.
So what am I missing, anything? What are your thoughts?
Apologies for the rather long post but its a tricky one and I want all the information and another more objective view of things.
The question is clearing the debt, how to do it.
The options as I see them are:
Get an unsecured loan for the CC debt and pay it off with lower interest over say 5 years. That would take care of the CC which is the primary concern but won't do anything to the larger family debt which are both acutely aware of.
Remortgage and pay off the CC with that - again doesn't take care of the larger debt.
Get an equity loan. We bought for 230, it was a shell at that time and we've done a lot to it (installing heating, plumbing, electrics, a kitchen, moved the bathroom and so on and so on) estimations are that its worth about £330 now. the neighbours moved in 2 years ago and paid £290 and that was for a 'ready to live in house' so £330 we feel is a sensible figure.
We currently have about £200 left on the mortgage, we put in 10% so we have £100k in equity.
The last option would be to sell the house. It would be a wrench as we both really like it but if the figures are accurate [enough] we would cover all of the debt to parents and CC and have money left for a deposit on another house. If we did this we thought about buying again straight away (not keen on this given the March 29th thing) or renting for 6 months with a large amount in the bank for a deposit ready to look again.
Only thing with that is there isn't too much around within or budget but again that may change.
At the moment my feeling is either take out an equity loan which enables us to clear the CC debt and get on with our lives or sell and clear all of the debt.
Pros for the loan: clear the CC debt and keep the house.
Cons: still have large parental debt.
Pros for selling: clearing every bit of debt we have and starting over and have a deposit for another house.
Cons: lose the house.
Although selling would mean losing the house it's for the greater good and would allow us to start again with a clean slate.
So what am I missing, anything? What are your thoughts?
Apologies for the rather long post but its a tricky one and I want all the information and another more objective view of things.
Last edited: